AI Summary of Article 108
The authorities of a UCITS's home Member State hold exclusive power to act against any infringements related to laws or regulations applicable to that UCITS. However, host Member State authorities may intervene regarding local laws outside the Directive’s scope. Any significant actions, such as authorisation withdrawal, must be promptly communicated between home and host authorities.
If a UCITS continues to act in ways detrimental to investors despite home State measures, host authorities can take protective actions including halting marketing activities. Members States are required to facilitate the legal serving of documents essential for enforcing these measures.
Article 108
1. Only the authorities of the UCITS home Member State shall have the power to take action against that UCITS if it infringes any law, regulation or administrative provision or any regulation laid down in the fund rules or in the instruments of incorporation of the investment company.
However, the authorities of the UCITS host Member State may take action against that UCITS if it infringes the laws, regulations and administrative provisions in force in that Member State that fall outside the scope of this Directive or the requirements set out in Articles 92 and 94.
2. Any decision to withdraw authorisation, or any other serious measure taken against a UCITS, or any suspension of the issue, repurchase or redemption of its units imposed upon it, shall be communicated without delay by the authorities of the UCITS home Member State to the authorities of the UCITS host Member States and, if the management company of a UCITS is established in another Member State, to the competent authorities of the management company's home Member State.
3. The competent authorities of the management company's home Member State or those of the UCITS home Member State may take action against the management company if it infringes rules under their respective responsibility.